Core Viewpoint - The article discusses the tax implications for small-scale taxpayers in China, particularly when their annual taxable sales exceed 5 million yuan, necessitating a transition to general taxpayer status [10][12]. Group 1: Taxpayer Classification - Small-scale taxpayers must register as general taxpayers if their annual taxable sales exceed 5 million yuan, with exceptions for specific cases [12]. - The "annual taxable sales" is calculated over a continuous period of up to 12 months or four quarters, not based on the natural year [14]. Group 2: Tax Deduction Rules - Input tax cannot be deducted for equipment purchased for employee welfare, such as cafeteria equipment, while it can be deducted for equipment used in business operations, like restaurant kitchen equipment [4]. - If a company fails to register as a general taxpayer in a timely manner, it will face penalties, including the inability to deduct input tax and potential impacts on the company's credit due to late tax filings [16]. Group 3: Registration Process - The registration process for becoming a general taxpayer involves logging into the electronic tax bureau, selecting the appropriate modules, and submitting the necessary forms [19].